The Department of Budget and Management is the source of the data on the P141 billion overall savings accumulated by DBM and the Office of the President in 2008.

This is the answer of Alternative Budget Initiative/ Social Watch Philippines to one of the spokespersons of the President who wondered aloud on TV: where did ABI gets its data? ABI gets its data from official government documents and nowhere else. It does not manufacture them.

Legislators have been mulling the idea of a P10 billion supplemental budget to generate additional resources for relief and rehabilitation work. ABI/Social Watch Philippines has stated that such is not necessary. What can be done is to mobilize sources of funds which are under the control of the President already. A supplemental budget will only increase deficit levels .

During the course of budget implementation, the President can impound funds provided for in the Appropriation Act passed by the legislature. This is through the simple expedient of withholding release of these appropriations and transferring them to the Overall Savings Account. These are then transferred to other accounts, as decided by the President. These transactions are reported to Congress in the New Expenditure Program (NEP) after the end of the year.

For example, the 2010 New Expenditure Program submitted by DBM to Congress reports that the President transferred from various departments a total of P178 billion. Then she transferred P38 billion to other agencies, leaving a net overall savings of P140 billion. At the end of 2008 and the beginning of 2009,these were still unreleased . Assuming that ¾ of this amount was released during the past three quarters of 2009, at least one fourth remains. Even a tenth of the total funds will already cover the P10 billion needed for the supplemental budget.

The DBM report on Overall Savings of P140 billion is found in pages 714-723 , National Expenditure Program, Fiscal Year 2010 prepared and submitted by DBM to Congress. The interested reader can easily access these documents from their favorite congressman, senator, and the DBM website itself. It is not as if these data are not accessible to the public.

“These are just paper savings.” According to the DBM secretary, the P140 billion is just paper savings. Of course, ten pages of finely printed lists detailing transfers from different departments and agencies, and transfers to other government instrumentalities are written on paper. Even the national budget itself is written on paper.

However, the minute approval for release of these savings is given by the President and the procedures are set into motion, what is on paper is turned into cash! Even executive instructions handwritten on paper can turn into cash.

This comment of the secretary is reminiscent of the remarks of former House Speaker Mitra who stated that outputs of Congress are just toilet paper. He was widely excoriated for these contemptuous remarks.

In the meantime, the Commission on Audit has reported to Congress that they have difficulty in auditing the P106 billion in overall savings in 2007 due to paucity of documents.

Sources of other data. Other data cited by ABI/Social Watch are also from the DBM. The data on the monstrous P881.8 billion Special Purpose Funds are found in Table II and II-2 on pages II and IV of the National Expenditure Program (NEP) Fiscal Year 2010.

The calamitous Calamity Fund is found in pages 669-673 of the NEP. The Contingency Fund which can be used for foreign and domestic travel of the President is found in pages 672-673 of the NEP

Happy researching!

Life goes on. The Ondoy and Pepeng calamities were not the first to batter the Philippines in 2009. On January 1, 2009, Negros Oriental, particularly the city of Dumaguete and the towns of Siaton, Dawin, Bacong and Valencia were submerged in a sudden flood, the likes of which Negrenses had not seen in more than 50 years. One month later, the floods struck again. This time, it was worse. Huge boulders rolled down the rivers, crushing all in their path.

The beautiful town of Valencia which is at the foot of the highest peak in the province, Mt. Talinis sustained heavy damage. Houses, bridges and roads were destroyed.

Today, Valencia celebrates its annual town fiesta. Visitors from the neighboring city of Dumaguete and nearby towns will trek to Valencia to savor its fruits (lanzones, rambutan, durian), smell its flowers, gorge on delicious food and congratulate its townspeople.

Because it is in the path of several rivers (and waterfalls), hot springs and a sleeping volcano, the risk of another catastrophe is always there. Nonetheless , classes have to continue, crops have to be planted and the rhythm of life must go on.

Happy fiesta!